SEATTLE UNIVERSITYASB
SYLLABUS
ACC 3361999 Fall Quarter
TTH 9:45-11:50
Instructor:Susan Weihrich
Office:Pigott 512
Telephone:296-5784
email:weihrich
Office Hours:T 2:00-3:00 Seattle
3:30-5:30 Bellevue
Th 4:00-5:30
`and by appointment
Course Objectives
The purpose of this course is to introduce the business student to a broad range of tax concepts and types of taxpayers. By the end of the course students should--
1. Understand the development and rationale of the current Federal income tax system;
2. Comprehend the many ways in which the U.S. income tax laws influence both business and personal behavior;
3. Develop a tax intuition that will permit them to make a well-founded guess concerning the most likely income tax consequence of any business transaction;
4. Be able to locate pertinent authority to resolve actual disputes concerning the correct income tax treatment of any transaction.
"If you know the position a person takes on taxes, you can tell their whole philosophy. The tax code, once you get to know it, embodies all the essence of life: greed, politics, goodness, charity. Everything's in there. That's why it's so hard to get a simplified tax code. Life just isn't simple."
Former IRS Commissioner Sheldon Cohen
Textbooks
Murphy, Concepts in Federal Taxation, 2000 edition.
1999 Edition. CCH:Internal Revenue Code of 1986 and Treasury Regulations
Optional: Solutions Manual, Copy Mart
RIA OnPoint
GradingPoints Midterm(2) 40%
Final 35
Tax Research 10
Quizzes & Returns 15
100%
An ancient proverb says: "I heard and I forgot; I saw and I remembered; I did and I understood."
The key to success in this course is your preparation. The coverage of each chapter will begin with a prepared lecture. Problems covering that material should be prepared for the next class. You should check your answers before that next class. Ask about what you do not understand. Solutions to all homework are on reserve at the library or you can purchase the solutions manual at Copy Mart; you are responsible for all material assigned. Much of the homework is very straightforward, and we will not cover it in class unless you have specific questions.
If any exam is missed, the final will be weighted more accordingly. For example, if you miss Exam 2, the final will be worth 55%. No makeup exam for the final will be given unless the student has received advance permission.
There will be six quizzes given throughout the quarter. They will be unannounced except for this announcement. You may drop the lowest score. There will no make-up quizzes given. Therefore, if you miss an exam, that will be the one to drop.
The research problems have a dual purpose. Tax experts are experts because they know when further research is necessary and they know where to look for an answer. This problem requires the student to learn when and where to research tax issues. In addition, the American Accounting Association in a recent report emphasized that development of effective communication skills should be a goal of accounting education. The preparation of a written communication to a client will facilitate such development.
Tardiness is not only rude to your fellow classmates; it is very disruptive to class. Therefore, please to not come to class late. If you are late, wait until the break to come in the classroom. I will penalize your grade for the class if you do come in late.
SNOW POLICY: I don’t do snow. Please call my office if you are not sure we will have class. I will leave a message about whether I will be walking in.
TENTATIVE CLASS SCHEDULE
ClassChapterTopic
Part I. Overview
Students should have some knowledge of the history of U.S. taxation. They should be able to discuss the criteria of taxation and their applicability to tax policy decisions. They should be able to discuss what influences legislation of tax laws besides the raising of revenues. The legislative, administrative, and judicial sources of tax rules will also be emphasized.
9/21-9/231Overview
Part II. Income
The student should have an understanding of the all inclusive concept of gross income and the underlying realization requirement. He or she should be able to describe the cash and accrual methods of tax accounting for gross income. The student should be able to explain the principles applied to determine who is subject to tax on a particular item of income.
The student should be able to explain the statutory authority required for the allowance of exclusions from income. He or she should be able to analyze the sections of the Code that permit exclusions. The treatment, by both employers and employees, of fringe benefits will be emphasized.
9/28 3Income-Inclusions
9/304 Income-Exclusions
10/515 Research
10/7EXAM
Part III. Deductions
The student must be able to explain the importance, as well as classify the deductions for and from adjusted gross income. He or she should be able to define the meaning of "ordinary", "necessary", and "reasonable" in relation to deductible business expenses.
The student should be able to discuss the factors that determine self-employed versus employee status, as well as various types of business expenses incurred by both, including travel, transportation, and reimbursed expenses.
10/125Deductions and Losses
Research Question #1 Due
10/146Business Expenses
10/1910Depreciation
Part IV. Property Transactions
The student should understand the tax accounting for depreciation of assets. The student should be able to define and calculate realized gain or loss. He or she should be able to define a capital asset and explain the importance of the characterization issue.
The student should have an understanding of the provisions for postponing the recognition of gains or losses in various types of transactions.
10/21 9Tax Basis
10/26 12 Nontaxable Exchanges
10/28 11Character of Income
11/2EXAM
Part V.
The student should be able to show an understanding of the standard deduction and other components of the tax formula for individuals. He or she should be able to apply the rules for determining dependency exemptions and filing status.
11/4-11/98Filing Status and Exemptions
Itemized Deductions
Part VI. Forms of Doing Business
The student should have an understanding of the different forms of doing business.
11/9-11/1613&14Corporations
Tax Return Due 11/16
11/18-12/2 “Flowthrough Entities
Research Question #2 Due 12/2
12/7 FINAL